So you want to be a CEO ?

The Executive Lounge is a series of premium content aimed at senior executives in organisations. Alongside the long form articles we have audio and sometimes video which will cater to different options for you to access this information when on the go.

In this article we will be focusing on some of the key things to consider before someone takes the jump to becoming a CEO. Whether you are a founder, moving horizontally from another executive function such as COO or CFO or being prepared for succession for an outging CEO, the move is one that requires a certain understanding of the organisation and requirements for you.

Becoming a Chief Executive Officer is a career ambition that comes with immense responsibility, strategic oversight, and a continuous learning curve. It requires a diverse skill set that extends beyond leadership and vision, encompassing governance, financial acumen, investor relations, and risk management. While the path to the top varies for everyone, there are several critical areas every aspiring leader must master to be successful. Whether leading a corporation, a charitable organisation, or a government body, the responsibilities remain vast, though the nuances and expectations may differ.

People

One of the most significant areas of influence is shaping organisational culture.

The principles, behaviours, and attitudes embedded in a workplace determine everything from employee engagement to business success. A strong, positive culture attracts top talent, fosters innovation, and improves overall productivity and leaders must be aware of how they set the tone for workplace expectations, ensuring that employees feel valued and aligned with the company's mission. Creating an environment of trust, transparency, and inclusion helps retain staff and build a motivated workforce.

A critical element of cultural influence is understanding the employee journey. Every interaction shapes how employees perceive their workplace, from attraction to recruitment to exit. Setting clear expectations during onboarding, offering continuous development opportunities, and fostering a feedback-rich environment ensures high engagement and performance. Recognising and rewarding contributions, whether through financial incentives, promotions, or public appreciation, reinforces positive behaviour and increases morale. Leaders who take an active role in employee engagement can drastically reduce turnover and build a resilient, committed team.

Understanding how organisations are structured is essential for an aspiring CEO. The differences between a partnership, a private limited company, a company limited by guarantee and a publicly traded corporation determine everything from taxation to decision making authority.

Finance

In the corporate world, a CEO often answers to shareholders, while in a charity, leadership is accountable to trustees and donors. In the public sector, the role requires balancing political oversight with bureaucratic efficiency. For example, a family-owned business might have a long-term vision driven by legacy, whereas a government agency will have mandates set by policymakers and public interest groups. Knowing who owns or funds the organisation, whether institutional investors, private equity firms, charitable foundations, or taxpayers, influences strategic choices and leadership priorities. This is especially important for those who aspire to be a CEO but are moving between organisation types.

Grasping business models is equally critical. Whether an organisation relies on a subscription-based model like Netflix, a donation-driven structure like the Red Cross, or public funding like a health authority, understanding how revenue flows in and out of the entity is key to making sound decisions. A technology firm scaling a software as a service product will have a vastly different cash flow structure compared to a charity that depends on periodic grants. Similarly, a government organisation must operate within fixed budgets while delivering public services efficiently. This plays into the reporting and important metrics that make up that reporting.

As a CEO, it is critical to know that financial statement literacy is non-negotiable.
Understanding balance sheets, income statements, and cash flow statements provides insights into operational efficiency and financial health. In 2008, many businesses failed due to poor cash flow management despite appearing profitable on paper. Understanding the difference between profitability and liquidity prevents disastrous miscalculations. In the charity sector, financial literacy helps ensure funds are appropriately allocated to programmes rather than administrative overheads. In government, fiscal management dictates whether essential services can be delivered without deficits or inefficiencies.

As such, building strong investor or stakeholder relations is about more than just quarterly earnings calls. It requires clear, transparent communication to maintain trust. When Apple faced scepticism over its innovation pipeline after Steve Jobs’ passing, Tim Cook’s ability to reassure investors and articulate a clear strategy was instrumental in sustaining confidence. In the charity world, strong donor relations ensure continued financial support. Oxfam and UNICEF, for instance, rely on trust and transparency to maintain donor contributions. Similarly, in civic organisations, a CEO must manage relationships with policymakers, regulatory bodies, and the general public, as seen when national leaders navigate economic crises and infrastructure projects.

Continuing with this theme of understanding finance, knowing how markets play a significant role in shaping strategies is also key, though the degree of influence varies. The performance of stock exchanges, interest rate fluctuations, and global economic conditions impact everything from capital-raising efforts to expansion plans in the corporate world. Consider Tesla’s ability to raise billions through secondary stock offerings to fund innovation. Charitable organisations, however, are affected by market conditions differently. Economic downturns may lead to reduced donations, requiring strategic fundraising initiatives. CEOs of government agencies must navigate funding cycles, budget appropriations, and public expenditure limits while still meeting their mandates.

Governance

The board of directors or governing body serves as both an oversight entity and a strategic sounding board. Understanding its structure, governance, and dynamics helps in navigating organisational challenges. Some boards are highly active, engaging in decision-making beyond their fiduciary duties, while others take a more hands-off approach. Microsoft’s transformation under Satya Nadella involved realigning the board’s focus toward cloud computing, demonstrating how a well managed relationship with directors can drive significant change. Charitable organisations like Amnesty International require strong governance to maintain credibility and compliance with regulations and civic organisations, government departments, advisory committees, and oversight boards provide a similar function, ensuring accountability and strategic direction.

Boards can take different forms depending on the organisation’s structure and mission.
- Executive boards, typically found in corporations, consist of senior leaders actively involved in daily operations and decision-making.
- Non-executive boards, on the other hand, play a more advisory role, offering strategic oversight without direct involvement in management.
- Oversight boards, common in large non-profits and public sector entities, focus on compliance, ethics, and financial integrity.
- Guardian councils, often found in social purpose, religious or heritage organisations, ensure the protection of the institution’s long-term mission and values.

Each type of board presents unique challenges, and a CEO must understand how to engage with them effectively, whether reporting financial performance to a corporate board, aligning strategies with a non-profit trustee group, or ensuring regulatory compliance with a governmental oversight body.

Assessing the skills and gaps within the board ensures access to the right expertise. If a company is shifting toward digital transformation but lacks board members with technology experience, recruiting individuals with that knowledge becomes a priority. This is why many legacy companies are adding former tech executives to their boards. Similarly, charities may require board members with expertise in fundraising, public relations, or programme evaluation. In government, having advisors with industry-specific knowledge can help craft better policies and public services.

The journey to becoming a successful CEO is multifaceted, requiring a blend of people leadership, financial acumen, strategic foresight, and strong governance skills. Mastering these areas equips aspiring leaders with the knowledge and tools needed to drive sustainable growth and navigate the complexities of the corporate, charity, or civic world. For senior leaders or executives looking to progress to this, I offer coaching.

In the next article in this series I want to speak about the mindset of a CEO.